Nifty Recovers To Hit New High, Infosys Shares In Limelight

Stocks markets recovered in noon trade to hit fresh high as losses in energy offset gains in IT stocks while investors awaited key corporate results due this week for further direction. Infosys led gains in IT pack. "Investors are looking for indications from earnings due today. The commentary on the quarter is crucial; if it does not meet their expectations, the negatives will start to take on more weight," said Sunil Sharma, chief investment officer at Sanctum Wealth Management. Nifty edged higher to all-time high of 10,664 while Sensex rose over 100 points.

Rising inflation and interest rates remain a concern, he added.

Retail inflation rate likely rose to a 17-month high in December, a Reuters poll showed, suggesting increasing pressure on the central bank to tighten monetary policy.

"There is nervousness around crude oil as well. Fundamentally, investors are looking at the impact crude (prices) will have on the margins," Sharma said.

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Oil inched away from three-year highs on signs that a 13-percent rally since early December may have run its course, although a surprise drop in U.S. production and lower crude inventories offered prices some support.

IT stocks advanced, with Infosys rising over 2 per cent. The company is due to report quarterly results on Friday. Tech Mahindra also rose nearly 1.5 per cent. TCS shares were muted, down 0.40 per cent, ahead of quarterly earnings later in the day. (With Agency Inputs)